Before going into the details, one must have to know about what is geofencing? It is actually a location-based marketing strategy in which the wifi cellular data and GPS are used to a pre-programmed action whenever a mobile phone enters a virtual boundary, which is called geofence. You have to set up it around a geographical location.

In geofencing, you can mark up an area on the map and then set up a digital barrier around it. Whenever a mobile device enters into that specific area, it can communicate with and detect the mobile devices, which are in the territory.

Along with the concept of geofencing, there is also a concept of proximity-based marketing. In this type of marketing, you send a special content to your users who are near to a particular location. This type does not only help to online retailers but also offline retailers as it provides them with equal capability by providing contextual recommendations. A geofence is very effective for the business retailers as it makes you capable to send messages to the users via message, email or application. Both Android and IOS should create a geofence in their own way.

What is Geofencing – Geofence Marketing?

what is geofencing geofence marketing

How Location-based marketing work in geofencing?

Location tracking is actually the precursor to geofence marketing and everything that has everything that has something to do with geo-specific marketing. To get the location of the users, the apps use a location API to query the location that is coordinated both in the Android and iOS environment. However, against popular perception, it is not just a GPS that can track the location of the user.

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Location data can be fetched from different sources like wifi, beacons, and device network. A combination of wifi, GPS, and cell-tower triangulation can be used to provide the most accurate location. There are also other sources as well like Beacon, IP, etc but the above three are those that are common in use.

Locations you can target with geofencing:

You can target specific locations with the help of geofencing. These locations can be competitor locations, your own location, events & trade shows, nearby streets, colleges, and households. You can target more than six locations through geofencing but these are just to give you an idea.

Advantages of Geofencing:

Geofencing has a lot of advantages from the marketing perspective. Some of the advantages have been described below:

  • Increase loyalty:

To gain a new customer is a ten-time more difficult than retaining a customer. That’s why building loyalty in the market is much more important than one can think of. Geofencing can help you in gaining this loyalty without offering discounts every time. When you share relevant promotion and good user experience than your competitors, it will make you stand unique from the competitors. The users will surely buy from you and share your brand name with family and friends.

  • Improve user engagement:

When you have the statistics of your customers then it becomes easier to increase customer engagement. By following the location gained through geofencing, you will be able to place the marketing ads according to their requirements. As a result, they will automatically show a good response towards your brand or business and engage more with your products. Otherwise, it is very difficult to know the right time to make the people see your ad.

  • Optimizing data & analytics:

The core part of geofencing is analytics and managing the data. Your all campaigns depend upon the data collected through the process of geofencing. You must have to organize and optimize the data received as a result of geofencing. You receive the ad views & impressions and the conversion zone visits.

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In this way, you can also modify your existing campaigns in order to get the best results. This helps you to check whether you are targeting the right or wrong area for your targeted marketing campaigns.

Geofence Marketing – Things to Keep in Mind:

  • Location accuracy:

    • You have to prioritize the accuracy optimization for getting the successful geofencing campaigns. It will help you find the exact location of the user.
  • Have a well-defined dashboard:

    • You must have a well-defined dashboard that has all the tools at a single place that are used to handle the geofencing campaigns.
  • Keeping an eye on statistics:

    • You should always make sure that you are observing the data all the time that you collect through geofencing. Without keeping an eye on statistics, you can’t do something good for your marketing campaigns.
  • Collect 3 types of data:

    • You must collect the three types of data including footsteps, dwell time and visit the history of users to get a clear understanding of the users’ interests.
  • Have an app:

    • If you have an application that can manage the process of geofencing then it is very good for you to handle the things at a time.
  • Actionable CTA:

    • A call to action button is very important for any business as it leads the users to do the action that you want them to do. If you don’t have an actionable CTA then it will not be good for your brand.
  • Location permission:

    • You must also make sure that the users of the area have granted you permission to access their data for your geofencing campaigns that are highly beneficial and effective.
  • Battery issues:

    • When you are using the data of the customers while geofencing, their mobile phone batteries may drop down quickly so you also keep a solution to this so that the customers don’t face any problem while your geofencing.
  • Privacy concerns:

    • You must inform your application users about collecting their visits’ data so that they must not have any privacy concerns at the end.

We have provided you with a complete guide about what is geofencing and location-based targeting for your brand marketing. This guide can help you a lot in the growth of your business in the future. Have additional questions about geofence marketing? Talk to one of the digital marketing experts at Clicta Digital today for a free consultation!